Texas Government 2306 Hicks-Final

Texas Government 2306 Hicks-Final Exam Questions With Complete Solutions Why must the budget in Texas be balanced? - Correct Answers ✅The state constitution demands it to be, it is unconstitutional for it not to be Article 3, Section 49a (pay-as-you-go limit), What areas in the state budget are impacted the most by federal expenditures? - Correct Answers ✅Healthcare and human services, education Know the reputation Texas has in terms of spending - Correct Answers ✅Low service, low tax state -seeks to maintain a favorable environment for business.Know how Texas get its revenue - Correct Answers ✅-Sales taxes

• severance taxes on oil and natural gas produced in the state
• licensing income

-interest and dividends

• federal aid

Describe how the money in the budget is organized into specific funds - Correct Answers ✅General revenues

fund:the state's primary operating fund; Includes

• the Available School Fund,
• the State Instructional Materials Fund 1 / 3

Texas Government 2306 Hicks-Final Exam Questions With Complete Solutions -and the Foundation School Fund

General Revenue-Dedicated Funds:is a subset of the General

Revenue Fund -State Parks Account and the college operating accounts (which hold tuition funds).

• legislature can appropriate money from these accounts

ONLY for their dedicated purposes.-the balances in this budget are used to certify that the constitutional pay-as-you-go limits (discussed below) are being met.

Federal Funds :includes all grants, payments, and

reimbursements received from the federal government by state agencies and institutions, including those from the Medicaid program, Title 1 Grants to Local Educational Agencies, transportation grants, and the Children's Health Insurance Program.

Other funds budget:consists of all other funds flowing into the

state treasury that are not included in the other methods of financing.-State Highway Fund -the Texas Mobility Fund

• the Property Tax Relief Fund
• the Economic Stabilization Fund. 2 / 3

Texas Government 2306 Hicks-Final Exam Questions With Complete Solutions

All funds budget: is the aggregate of all these ways of

financing government and refers to all revenue that goes through agencies, including federal and state programs.What provisions in the state constitution affect the budget? - Correct Answers ✅-limitation on how much money we can spend above our debt -pay as you go limit Know the major steps and players in making the budget -

Correct Answers ✅Two parts:

• Governor- chief planning officer, budget bills can be line

item vetoed. LBB Legislative budget board State agencies requesting money

• Submit to legislature. Ran like a bill being

passedLegislature gives out funds Know and analyze the budget crisis in Texas - Correct Answers ✅Came from great recession and property tax reform-Came to a budget short fall, a lot less money came in than was expected-Gov considered using rainy day funds but did not Know the major issues that have shaped education policy in Texas, including the Gilmer-Aiken Laws and possible reforms to the quality of education in the state - Correct Answers

• / 3